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The RBI as outlier on inflation

As the threat of inflation returns, the Fed and others adjust their messages - why not the RBI?

RBI
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Illustration: Ajay Mohanty

Mihir S Sharma
There’s something of a debate happening right now about inflation. In fact, this debate has three legs. First, are the inflationary signs being seen in various parts of the world “transitory”, or structural? Second, is inflation being juiced by actual fiscal policy actions? And, third, are central banks taking inflation as seriously as they used to?
 
In India, consumer price inflation soared in May out of the Reserve Bank of India’s (RBI’s) comfort zone. That extends for two percentage points above and below 4 per cent; but the CPI in May increased 6.3 per cent year on year, well
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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